Skip to main content

The Globe and Mail

Barclays cuts natural gas price forecasts

AltaGas acquiring Alaska natural gas assets

iStockphoto / Getty Images

Barclays Capital on Thursday said it expects U.S. natural gas to average $3.25 per million British thermal units in 2013, citing a slight slowdown in production, while maintaining its forecasts for Brent crude oil for 2012 and 2015.

The bank said it maintained its 2012 and 2015 Brent price forecast at $115 and $135 per barrel, respectively, with the balance of risk to the upside.

"However, should the scenario of a rapid deterioration in Iran's external relations, with no resolution in 2012, continue to force itself into the base case, we would expect the annual average to be as much as $20 higher," the investment bank said.

Story continues below advertisement

Barclays' natural gas estimate of $3.25 for 2013 is down from its previous estimate of $3.70 within the last month but up from its revised estimate of $3.05 for 2012.

The bank's previous estimate for 2012 was $3.80.

"The cuts reflect the impact of warm weather in 2012 and the fact that supply has been outrunning our estimates," said Michael Zenker, managing director at Barclays Capital Commodities Research in New York.

Report an error
Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.